Mississippi Income Tax Holiday Act of 2023; create.
Impact
If enacted, SB2701 would directly influence taxpayers in Mississippi by reducing the amount of income tax owed for the filing year 2023 by a significant margin. It is expected to benefit a broad range of individuals, providing much-needed financial assistance during challenging economic times. However, it could also impact the state's revenue collection, as the implementation of tax credits could reduce the overall income tax revenues in the short term, necessitating careful financial planning by state officials.
Summary
Senate Bill 2701 is designated as the Mississippi Income Tax Holiday Act of 2023. The bill proposes that starting from the 2023 tax year, any individual taxpayer filing a Mississippi income tax return will receive a credit of 20% of their income tax due, as calculated on their respective tax forms. This initiative is intended to provide financial relief to taxpayers and is part of efforts to stimulate economic growth within the state. The bill also states that the tax credit cannot be transferred to another individual nor carried over to subsequent tax years, which ensures it is a one-time benefit within the specified tax year.
Contention
There may be discussions around the effectiveness of the bill. Supporters might argue that the tax credit is an essential move towards enhancing disposable income for residents, which could foster increased consumer spending. On the other hand, detractors may raise concerns about the implications of reducing tax revenue for public services and the long-term economic health of the state. Furthermore, the fact that the credit is not transferable could be a point of contention, as some might advocate for a more flexible approach to tax rebates.